PEACHSTATE HOSPITALITY HAS refinanced two of its Georgia hotels with $19 million in loans to use the equity on the properties for other development projects. The Warner Robins, Georgia-based hotel management and development company, under President Rajiv Bhatia and CEO Danny Patel, arranged the loan with the help of real estate investment banking firm PMZ Realty Capital.
The two refinanced hotels are the 106-room Courtyard by Marriott in Warner Robbins and the 80-room TownePlace Suites in Albany, Georgia. The Courtyard is near Robins Air Force Base, Houston Healthcare, Northrup Grumman, Boeing, Frito Lay and Purdue Farms. The TownePlace Suites was completed in 2018 with charging stations for Teslas and electric vehicles. It is near Albany State University, Proctor & Gamble and Miller/Coors Brewing Co.
“These hotels are important assets in our portfolio. By establishing permanent financing on these hotels, PeachState can continue to execute our strategic growth plan that we mobilized in 2016,” Patel said.
Both hotels were refinanced with 10-year, non-recourse CMBS loans.
“The hotel financing market is still very active and rates remain historically low for the right deals and sponsors,” said PMZ President Peter Berk. “These deals represent almost $50 million in hotel financing that PMZ has completed for PeachState over the last 24 months.”
In April, PMZ arranged an $11 million loan for Cary, North Carolina-based CMC Hotels to finance future growth on its Fairfield Inn & Suites by Marriott Raleigh Cary. CMC Hotels operates under President Shahn Chhabra.
Chhabra said at the time that his company has worked with PMZ for more than 15 years.
“PMZ obtained a great piece of long-term debt on the Fairfield property,” he said. “We are committed to North Carolina and this expanding region and this financing gives us the financial flexibility to focus on a new project in the future.”
Last year, PeachState was named Marriott International’s CONNECT Developer of the Year. The award is given to developers who exceed their goals for real estate projects in a year.
During 2018, PeachState developed seven Marriott brand hotels with more than 700 combined rooms. The projects include the 120-room Aloft Alpharetta, Georgia, the 167-room Courtyard in Downtown Dallas, Texas and the dual-branded 72-room Fairfield Inn & Suites and 90-room Courtyard in Lithia Springs, Georgia.